- Glassnode reports Bitcoin has shown resilience with only a 28% correction from cycle highs compared to 50% drops in Ethereum and Solana.
- The upcoming White House crypto summit focusing on reserve assets could trigger additional market volatility as traders await clarity on Bitcoin’s special status versus altcoins.
- Analysts identify key price levels to monitor including the Short-Term Holder Cost-Basis at US$92k and a critical support zone at US$71k if market conditions deteriorate further.
“Violent volatility” will likely continue to shake investor confidence, according to a report by analysts at Glassnode.
The report noted that both Solana and Ethereum have collapsed by 50% from their cycle highs, while Bitcoin has seen only a 28% reduction.
This highlights the relatively robust demand picture Bitcoin has seen during the 2023-25 uptrend, which has been characterised by shallower drawdowns when compared to prior cycles.
GlassnodeThough BTC has experienced much more violent drawdowns in the past, as the below chart illustrates.
Currently, the number one crypto is up 3% on the daily and 7% on the weekly timeframe, following whipsawing earlier, when the market heavily reacted to political events and announcements.
Related: Here’s Who Will Be Attending Trump’s First White House Crypto Summit
US crypto reserve asset remarks, discussions about the inclusion of several altcoins and Trump’s tariffs, which have sparked an international trade war, have dominated the headlines.
Trump’s White House Crypto Summit
Tomorrow’s high-level White House crypto summit will likely bring more volatility. US Commerce Secretary Howard Lutnick has already made comments about the Bitcoin strategic reserve, saying it will include altcoins but Bitcoin will be treated differently.
Popular crypto analyst Miles Deutscher appears cautiously optimistic about the summit, suggesting investors should monitor four key categories: ETF contenders, US-made tokens, tokens previously mentioned by Trump and projects attending the summit.
He particularly emphasises watching for tokens that fit multiple categories, implying these could see increased attention or potential benefits from the summit.
It’s expected that a public statement following the summit will shed some light on the reserve issue. Traders will no doubt follow the event closely. So, will the volatility continue or can we expect calmer trading conditions?
Analysts’ Price Points to Watch
The Glassnode analysts note that “decisive reactions around Short-Term Holder Cost-Basis at $92k appear to be a key level to monitor for local momentum”.
Related: South Korea Considers Bitcoin ETFs Following Japan’s Lead in Crypto Regulation
They also believe AU$112k is the area to keep an eye on:
If the market deteriorates further, the $71k region is a key area of interest. It aligns with several technical, and on-chain metrics alike, making it an important level for the bulls to defend should it be reached.
GlassnodeCredit: Source link
